Blackhawk Network: decline in employee satisfaction and engagement in Singapore

Concept artwork about workplaces generated by
Bing Image Creator (Dall E 3).

Leveraging employee recognition, rewards, and incentives to foster engagement and increase loyalty in an evolving workplace environment, according to Blackhawk Network (BHN).

BHN's latest research highlights how leaders can help guide their organisations through these transitions:

Employee satisfaction and engagement

Employee satisfaction and engagement in Singapore has recently declined. Amid fears surrounding job security and pay, productivity has begun to suffer. According to BHN research, 93% of employees expressed concerns about their current employment situation.

The two top concerns were “pay increases that won’t cover the cost of living” (41%) and “being asked to do more without a pay increase” (36%).

The current uncertainty is clear, with one in four employees actively seeking new opportunities. They often prioritising pay and benefits when considering potential employers, said BHN.

However, the desire for higher pay alone is not enough. More than half (51%) of the respondents stated that they want more frequent recognition and rewards as part of a broader engagement strategy.

BHN VP of Incentives in APAC, Peter Malycon said: “Companies are encouraged to consider their recognition and incentives programmes, and ensure that they are aligned with the evolving needs of their workforce. Our research clearly highlights that employees are increasingly seeking not just higher pay, but more frequent acknowledgement for their contributions.”

The role of AI and technology in the workplace

BHN’s survey showed that 66% of employees are using AI in their roles, with 83% reporting an increase in productivity as a result. However, there is a delicate balance to be struck between leveraging AI’s benefits and maintaining human-centred recognition programmes, BHN noted. Employees continued to value personalised, timely recognition and rewards that reinforce their sense of value within the company.

The hidden significance of employee engagement and wellbeing

As AI continues to redefine the traditional workplace, re-engaging and rebuilding employee commitment will become more critical in the coming years, BHN suggested. Meaningful engagement, alongside efforts to support employee wellbeing, will play a key role in driving and enhancing business outcomes.

This is reflected in the fact that 81% of respondents indicated that receiving recognition and rewards from their company helps to keep them energised and boosts their loyalty. Moreover, 61% emphasised that the timeliness of these rewards is key. Digital or prepaid cards are a great solution to this and are loved across a range of ages and work environments.

“As we approach Employee Appreciation Day, Singaporean employers should consider how they can integrate both small and large-scale recognition tactics; it’s not just about the big bonuses, but about creating a culture where employees feel consistently valued and rewarded for their contributions”, Malycon emphasised.

Employee Appreciation Day, celebrated annually on the first Friday in March - 7 March this year - offers an ideal opportunity for employers to show their gratitude and celebrate employees’ achievements and contributions, BHN said. 

ServiceNow: Customer service gaps causing Singaporeans to lose two full working days a year

Source: ServiceNow ebook, Customer Experience Intelligence Report: Addressing Singapore’s billion dollar customer service gap. A summary of the research findings. Singaporeans collectively spent over 30 M hours on hold because of customer service activities.

Singaporeans spent more than 30 million hours on hold to address a customer service complaint or issue, according to new research* by ServiceNow, the digital workflow company. The average person in Singapore spent approximately two full working days (equivalent to 16.1 hours) on hold last year, representing a loss of S$1.24 B in wages** nationwide.

Slow service solutions will see Singapore business’ operating costs increase, with employees spending an average of 4.7 working days to resolve each customer issue. According to Wee Luen Chia, MD, ServiceNow Asia, “The effect goes wider than just the individual businesses putting their customers on hold, it’s impacting Singapore’s competitiveness.”

Over a third (34%) of Singaporeans have had to resolve issues by themselves because of poor service, ServiceNow said. Customers ranked the top three frustrations with customer service as having to repeat their issues to multiple people/departments (60% of respondents); being transferred to multiple people or departments (53%), and waiting on hold (42%).

Respondents also suggested why the country is ‘stuck on hold’: 

- Staff not having any power to make decisions/resolve issues (52%)

- A lack of ownership and responsibility between different departments (48%)

- Inefficient communications within the organisations (48%)

- Customer service department is understaffed or overwhelmed (47%)

- Customer service staff not listening to me (40%)

Seven in 10 (72%) of Singaporeans have even less patience with bad service because of inflated costs; a similar number of locals (70%) think customer service is getting worse because companies are cutting costs.

One in three respondents believe that the time they spent on hold in 2023 is an increase from the previous year; over two out of five respondents (43%) believe the time it takes to resolve an issue has also increased. Another 43% of Singaporeans say their expectations of an organisation’s customer service department increased in 2023.

Seventy percent of Singaporeans also reported encountering service disruptions from key providers. On average, each Singaporean experienced two disruptions each year.

"Businesses that empower their employees and teams to collaborate quickly and transparently to resolve issues will succeed in 2024,” said Chia. 

"Frustrating wait times, little resolution and abrupt service disruption is costing Singapore its patience along with national productivity, too.”

The research also compared generational service experiences. Baby Boomers were left waiting the longest for service in Singapore, in 2023, spending an average of 5.7 days for their issue to be resolved. For younger generations, it takes around two days less on average to have their issues resolved (3.6 days).

More than half (56%) of Gen Z used self-service options more frequently over the past year to resolve issues and are less likely to speak to an agent, while 55% of Baby Boomers preferred to speak directly to a person (24% for Gen Z).

“A better customer experience starts with clearer visibility of where and why processes are currently letting customers down,” said Chia. 

“Only then can organisations invest in improving operations, to consolidate, augment, or replace the service gaps. Instead of betting on quick-fix solutions, customer experience requires a long-term commitment to building service roadmaps to progressively meet and even exceed Singaporeans’ evolving expectations.”

Good service is about being strategic around speed, empathy and transparency, ServiceNow said. Two thirds of Singaporeans think that having their issues resolved quickly is key to good customer service, with transparency and empathy frequently emerging as top themes for an exemplary customer experience: 

- Having the issue resolved quickly (67%)

- Getting through to someone quickly by phone, chat or in person (52%)

- Having an empathetic customer service agent who cares (47%)

- Being able to track progress (46%)

- Customer service agent knowing all your service details/interaction history (42%)

“Customers expect every part of a business to communicate and work together to solve their issues, fast. The research shows that customers attribute an organisation’s inability to solve issues to business siloes and disempowered teams,” said Chia. 

“To break this downward spiral and earn back trust, customer service needs to enable the service teams to do their best work. Routing the right people to the right process, at the right time will solve the customer’s issue fast - this is where automation and AI technologies can deliver their best work in the service of employees and also for customers." 

Explore

Read more about the research at https://www.servicenow.com/content/dam/servicenow-assets/public/en-us/doc-type/resource-center/ebook/ebk-customer-experience-intelligence-report.pdf (PDF)

*One thousand and thirty Singaporeans aged 18 and above took part in ServiceNow’s study, conducted by Lonergan Research in early 2024, to assess the state of service in Singapore within the past year.

**S$1.24 B estimated loss in wages was calculated at a median hourly rate of S$28.38 multiplied by the total average number of hours spent by workers resolving issues (17.9), multiplied by working population.

New HERO Scorecard targets companies outside US

HERO and Mercer have launched the HERO Health and Well-being Best Practices Scorecard in Collaboration with Mercer – International Version. Modelled after the US version, the HERO International Scorecard is designed for use by employers in any country*. Available online and free of charge, the new framework allows employers to evaluate their health and well-being efforts by using a comprehensive inventory of current best practices compiled by industry thought leaders.

“Social and workplace norms can differ greatly from office to office within large companies and from community to community within the US. Companies with an international presence face additional challenges because workplace health and well-being best practices that have been tested and proven in America might not be relevant in the other countries,” said Dr Paul Terry, President and CEO of HERO. “Business leaders need comparative data, but that can be quite costly and difficult to secure without the help of a resource like the HERO Scorecard.”

In the US, where the domestic version of the Scorecard has been available since 2008, employers can benchmark their program and outcomes against companies of similar sizes and industries. As employers begin completing the new HERO International Scorecard, benchmarks will become available that allow employers to compare their programmes to others in their own country and in other countries where the Scorecard is used.

The HERO International Scorecard asks employers to provide information about organisational and cultural support for employee health and well-being, specific programme offerings, integration of health and well-being programmes with other areas of the company, strategies to encourage participation (such as communications and rewards), programme costs, and outcomes. After submitting the online scorecard, the employer immediately receives an email showing their best practice scores in six areas that contribute to employee well-being. When available, benchmarks will also be added.

“Companies benefit in multiple ways by completing the HERO Scorecard: from access to information about best practices and comparative benchmarking, to planning for future program enhancements and building internal consensus for improvements,” said Dr Steven Noeldner, Mercer partner and chair of the HERO Research Study Subcommittee. “Providing this breadth of analysis and comparison for domestic and international business will streamline efforts for employers and give them a competitive advantage in building a healthy workforce now, and in the future.”

“With continuous, double-digit growth in health costs, ageing populations and ever-increasing health consciousness, companies in Asia take workplace health and wellness very seriously. Most employers are looking for the right solution to address health issues and related decreases in engagement and productivity,” said Cecilia Deasy, Partner, Regional Consultant, Mercer, Asia. “Unfortunately, too many organisations are implementing programmes that are passive in nature, with limited experience or guidance. As a result, most programmes fail to generate the material impact that organisations are looking for.

“Workplace health and wellness cannot be effectively managed with band aid solutions. Engagement, motivation, support andstrategy are critical to ensure success. With the best practice framework and achievable results, the HERO scorecard offers the evidence and navigational tools required for employers in this region to implement successful workplace health and wellness programmes and generate real results.”

Interested?

The International Scorecard is currently available in English only. Learn more about the HERO International Scorecard (PDF)

Take the International Scorecard

*The initial HERO Scorecard was intended for use in the US only.

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Employees prefer recognition to money

Source: ACCA report. Tone at the top influences corporate behaviour the most, according to 61% of respondents.

A new report, Culture and channelling corporate behaviour: ACCA member survey, published by ACCA (the Association of Chartered Certified Accountants) has found that recognition at work is the highest motivator, regardless of age, industry or location – even outstripping monetary reward.

The survey, which was co-funded by the ESRC (Economic and Social Research Council), harnessed the views of almost 2,000 ACCA finance professionals from across the globe. The results also highlighted geographical variations, including the desire to reach a more senior position as being a stronger motivator in Africa and Asia while having a more challenging role was most important for employees in the Americas.

Jo Iwasaki, ACCA Head of Corporate Governance, said: “The survey highlighted some clear distinctions between employee views in Europe and America and Africa and Asia. For example in Africa and Asia rules and procedures play a larger role than for respondents in Europe. However, the tone of corporate leadership is vitally important in channelling the overall culture of an organisation in any region.”

The issue of performance management will be of particular interest to business leaders. Although half of the respondents conceded that performance-related pay schemes could help foster best performance, nearly two-third thought that such systems may invite people to exaggerate or otherwise falsify their measures. This shows the fine line employers need to tread when putting in place performance related targets and the need for careful consideration when linking them to pay.

Konstantinos Stathopoulos, Professor of Accounting and Finance at Manchester Business School and co-author of the report, said: “The survey results reveal there is no 'one size fits all' strategy when it comes to building corporate culture and behaviour. Even though the role of leadership in setting the tone is highlighted in most responses, the survey uncovers significant differences in attitudes and perceptions regarding effective channels of corporate behaviour. These disparities are also intensified by differences in respondents’ geographic location, industry and characteristics.”

Interested?

Read the report

Rise in happiness in middle income Asian nations: Pew Research

People in emerging economies are more satisfied with their lives today than they were in 2007. A Pew Research Center survey* finds that publics in emerging nations now rival those in advanced economies in their self-reported well-being. The rise in happiness among middle income countries is driven in large part by attitudes in Asian nations, such as China, Indonesia and Malaysia. People in developing economies are also happier today than they were seven years ago, though the improvement has been more modest.

Pew said the convergence in attitudes between middle and high income nations is not due to a significant decline in satisfaction in richer countries, despite the toll the global recession took on advanced economies’ growth rates. Personal well-being changed little in most of the wealthier nations surveyed in both 2007 and 2014, including in Japan, the consultancy noted.

National income continues to be closely linked to personal life satisfaction at the country level. Richer publics, on average, report being happier. For example, 56% of Malaysians rate their life as a 7 or higher on 0-10 scale, whereas 34% of people in Bangladesh, a much poorer country, say the same. However, the advantages of being in a rich nation tend to taper off among the wealthiest countries, suggesting that after a certain point, increasing income does not make as much of a difference in life satisfaction. To continue with the example, despite the enormous gap in GDP per capita between Malaysia and Germany, these two publics express similar levels of life satisfaction (56% and 60%, respectively). 

Similarly individuals with higher incomes, more education, more key household goods and paid employment are more satisfied with their lives than people who are less well-off.

When asked about the next five years, Asian and African publics are the most optimistic among emerging and developing countries. People in the Middle East are the least hopeful about the future.

*The Pew Research Center survey was conducted in 43 countries among 47,643 respondents from March 17 to June 5, 2014. The question "Here is a ladder representing the 'ladder of life'. Let’s suppose the top of the ladder represents the best possible life for you and the bottom, the worst possible life for you. On which step of the ladder do you feel you personally stand at the present time?" was asked in all 43 countries. The report generally focuses on the differences and similarities in life satisfaction across economically advanced, emerging and developing nations. Read more about the survey here.

Start customer engagements before they buy: Aimia

Aimia, a global leader in loyalty management, has released a global report highlighting the importance of connecting with customers beyond the transactional stage. Rewarding Interactions: Are You Ready for Customer Intimacy recommends planning to interact with customers both before and after the purchase activity. 

Companies which truly value interactions develop additional ways to reward and recognise loyal customers beyond points, cash and discounts. For example, social currency - online recognition and status - is a way for customers to gain social standing among peers and social groups, said the company, which owns stakes in Air Miles Middle East, operates China Rewards, a coalition loyalty programme in China that enables members to earn and redeem a common currency, and has a minority position in Think Big, the owner and operator of BIG - AirAsia and Tune Group's loyalty programme.

"Real loyalty isn't created at the close of the sale," said Rick Ferguson, Vice President, Knowledge Development for Aimia. "It's created when the brand and the customer become intimate through multiple interactions before, during and after the purchase. Companies that strategically use those interactions to learn more about their customers will build greater loyalty, create new revenue streams and develop lifelong customers."

According to Aimia's research, there are four reasons marketers should collect interaction data in addition to transaction data:

Create new revenue streams. Interaction data is an untapped resource. There is revenue to be had from refining the information.  

Drive incremental revenue from the loyalty base. Tying interactions to transactions creates a three dimensional, customer-centric view generating sustainable incremental lift beyond a campaign ROI. 

Leverage and validate investments in new communication channels. Marketers need to reach consumers where, when and how they want to be reached. Different media, such as social media and mobile, are needed to connect with consumers throughout their interactions with the brand.

Lower the cost to serve, while increasing value. Seeing the consumer on her entire lifestyle journey enables a wider array of partnerships to be formed, lowering the cost to run the loyalty program while increasing value to the consumer.